Sales data from the CGA RSM Hospitality Business Tracker revealed that Britain's top hospitality companies recorded a sales growth of 3.6% during May 2024 when compared to the corresponding period in the prior year.
Following a 1.7% decline in trading activity during April, there was a reversal of fortune, with the preceding six months registering gains.
May's sales exceeded the most recent inflation rate as reported by the Consumer Prices Index, even with rainy conditions prevailing in numerous locations.
Two bank holiday weekends and an easing of household bills contributed to a surge in consumer spending.
The pub sector experienced the highest growth at 4.4%, while restaurants achieved 3.8% year-on-year increase.
Bars registered a 2.7% drop, which marked a significant improvement compared to April's figure.
The on-the-go segment saw a decrease of 1.6%.
For the fifth consecutive month, hospitality groups outperformed other regions with sales growth of 4.1% in London and 3.5% outside the M25.
According to Karl Chessell, CGA by NIQ's director, May's positive growth figures following April's decline brought a much-needed respite.
Photo: Hospitality groups achieved better sales in London compared to other regions in Britain.
Sales Growth Across Sectors of the Hospitality Industry
A return to growth in May is welcome news, but the sluggish gains since April's minimum wage increase means that many operators will be struggling to absorb this additional overhead.
Saxon Moseley
The hospitality sector in May 2024 demonstrated a commendable resilience, as pubs reported a substantial sales growth of 4.4% and restaurants achieved a solid year-on-year increase of 3.8%.
Despite some sectors showing positive growth, the bars segment registered a notable decline of 2.7% in year-on-year sales for May 2024.
In a positive turnaround, hospitality groups as a whole reported sales figures for May 2024 that not only reversed the negative trend from April but also exceeded the prevailing inflation rate.